The face of the UK office is changing as hybrid working becomes a permanent feature of working life.
And although the unprecedented upheaval caused by the coronavirus is predicted to change the face of the high street, a study has found that the UK office market is bouncing back as people return to work.
The latest royal institute of chartered surveyors (RICS) UK Commercial Property Survey results point to the market gaining momentum over the first quarter of this year, with demand growth accelerating in relation to both occupiers and investors.
Respondents to the survey, which include chartered surveyors, estate and managing agents, saw a notable increase in UK office demand in Q1 2022 of 30 per cent over the three months from the end of 2021.
But despite the general improvement in the survey results, the report said that contributors remained cautious on the outlook for the economy given pressures caused by rising living costs and higher interest rates.
Additionally, the report said that there is yet to be a notable effect on the SME office market from the pandemic, mostly as many SME’s have adopted a “sit and wait” approach.
Chartered surveyor and director at Cromwell Holdings Darren Bradley, said: “As government support is eased and SME’s determine their property strategies in light of emerging hybrid working practices, much surplus office accommodation will be released to the market, driving down effective rental levels and forcing up yields, resulting in falling capital values.”
Meanwhile the demand for homes continues to rise.
So, which property types are likely to be the most impacted as the real estate market evolves?
